TOKYO -- Japan's jobless rate jumped back to a record high of 5.5% and industrial output slumped in October, the government said Friday, showing the deflation-racked economy began to stumble early in the fourth quarter.

Industrial production fell 0.3% on month in October, the second straight decline, the Ministry of Economy, Trade and Industry said. The drop confounded consensus expectations for a rise of 0.4% and, together with weak...